Investing & Markets · 10 min
Roth IRA Fundamentals
After-tax contributions, tax-advantaged growth, and the rules that matter.
A Roth IRA is funded with money you have already paid tax on. Qualified withdrawals later — including growth — are generally not taxed again.
Contributions are capped annually and eligibility phases out at higher incomes. A traditional IRA reverses the tax treatment: deduct now, pay tax later.
Contribution limits and income thresholds change. Confirm current figures and your personal eligibility with a licensed tax professional.
Key takeaways
- Roth = taxed now, qualified growth untaxed later.
- Annual limits and income phase-outs apply.
- Verify current rules with a licensed professional.
Knowledge check
A Roth IRA is funded with which kind of money?
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